Best intraday stocks to watch out for on February 20
Nifty failed to close above the 20-week average, and it formed a long-legged, small-body candle.
The index closed below the 23.6% retracement of the recent upside move of 17353-18134. Interestingly, it also closed below the Budget day high. The Nifty has faced strong resistance at the downward channel and declined sharply. On Friday, the 50DMA acted as a resistance and closed below the 100DMA too. Nifty has formed a rising wedge pattern which is negative. A decline below Friday's low of 17884 will confirm the pattern breakdown.
All the momentum indicators declined today. As mentioned earlier, the VIX is dangerously at its lowest level, which may show its impact on price from now onwards. Now the question is will it hold the 20DMA support of 17847 and the 38.2% retracement level of 17744? This zone is very crucial for a bullish bias. In any case, if the Nifty closes below 17744, it can retest the 17520 or even below also. The selling volume is higher, and the index has registered a distribution day. For now, not a time to hold long positions.
Here are the intraday stocks to watch out for on Monday
The stock broke the counter-trend consolidation with a higher volume. It also closed almost the lowest level of the consolidation period. The stock is below all key short and long-term averages. It formed a strong bearish Heikin-Ashi candle and is 6.34% below the long-term average of 200 DMA, and trading 2.74% below the 20 DMA. It also declined below the 20 periods double EMA. The Elder impulse system has formed a strong bearish bar, while the RRG Relative strength line is down the 100 zone and shows underperformance compared to the broader market. The RSI failed to move above 40 during the consolidation and is currently at 31.58, in the strong bearish zone. The MACD line is down the zero line and below the Anchored VWAP support. In short, the stock broke the bearish flag pattern. A move below Rs 1855 is negative, and it can test Rs 1800. Maintain a stop loss at Rs 1880.
The stock closed above the Budger day range and above the 20DMA decisively. It recorded higher volumes, confirming the breakout, trading above all key moving averages. It is 2.48% above the 20DMA and 3.4% above the 50DMA. The MACD has given a fresh buy signal. The RSI entered into a strong bullish zone, trading near the previous high. The Relative Strength line is in the above-100 zone, and the momentum is picking up. The KST and the TSI have given fresh bullish signals, while the Elder impulse system has formed a strong bullish signal. It is also above the Anchored VWAP resistance. In short, the stock is technically strong and near the prior pivot. A move above Rs 2228 is positive, and it can test Rs 2300. Maintain a stop loss at Rs 2200.
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